Duke Energy sues city over streetcar project

Utility claims Cincinnati favoring another public utility

Duke Energy has sued Cincinnati over the cost of moving utility lines in preparation for the proposed streetcar line.

Work is under way to move underground power lines to make way for the project, but there's been no agreement over how much of the cost each side should bear.

The dispute has already delayed the project by one year, with an expected completion date of 2015.

Duke claims the city has created a public utility with the streetcar line and is violating the law by imposing costs for one utility by another.

The utility claims the city cannot force it to move its utility lines, which are in working order, unless the city pays for the cost of the work.

The city disagrees, and so the issue will be resolved in court.

"This lawsuit ... should not be misinterpreted to reflect a major conflict between Duke Energy and the City of Cincinnati," said a utility spokesperson. "We have simply reached an impasse regarding who bears the cost responsibility and have now agreed with the city that this issue will best be resolved through the lawsuit. The agreement allows construction to proceed while we obtain a legal determination on certain issues created by the right of way ordinance."

The project already suffered a setback this week, when city officials announced that all bids for construction work came in significantly over budget.

Combined with other potential changes, the higher construction costs for tracks and stations could push the price tag for the project to at least $130 million.